Zacks Research Upgrades Peloton Interactive (NASDAQ:PTON) to Strong-Buy

Key Points

• Zacks Research upgraded Peloton Interactive (NASDAQ:PTON) from a "hold" to a "strong-buy" rating, indicating increased confidence in the company's potential for growth.
• Peloton's stock has seen a price target increase from several analysts, with targets ranging from $10.00 to $11.00, suggesting a positive outlook on its market performance.
• Despite reporting a quarterly earnings beat with $0.05 EPS, Peloton experienced a year-over-year revenue decline of 5.8%, highlighting ongoing challenges even as it moves toward profitability.

Peloton Interactive (NASDAQ:PTON - Get Free Report) was upgraded by Zacks Research from a "hold" rating to a "strong-buy" rating in a research note issued to investors on Monday,Zacks.com reports.

Other research analysts have also issued research reports about the company. Truist Financial set a $11.00 price target on Peloton Interactive in a report on Thursday, August 7th. Macquarie lifted their price target on Peloton Interactive from $10.00 to $11.00 and gave the stock an "outperform" rating in a report on Thursday, August 14th. UBS Group upgraded shares of Peloton Interactive from a "neutral" rating to a "buy" rating and boosted their price objective for the company from $7.50 to $11.00 in a report on Wednesday, July 30th. Morgan Stanley boosted their price objective on shares of Peloton Interactive from $4.00 to $5.75 and gave the company an "equal weight" rating in a report on Monday, August 4th. Finally, Canaccord Genuity Group restated a "buy" rating and issued a $10.00 price objective on shares of Peloton Interactive in a report on Thursday, October 2nd. One investment analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, nine have assigned a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company currently has an average rating of "Hold" and an average price target of $9.36.

Peloton Interactive Stock Performance

Shares of PTON stock opened at $7.31 on Monday. The stock's fifty day moving average is $7.92 and its two-hundred day moving average is $6.98. The firm has a market capitalization of $2.98 billion, a P/E ratio of -23.58, a PEG ratio of 3.20 and a beta of 2.27. Peloton Interactive has a fifty-two week low of $4.54 and a fifty-two week high of $10.90.

Peloton Interactive (NASDAQ:PTON - Get Free Report) last posted its quarterly earnings results on Thursday, August 7th. The company reported $0.05 EPS for the quarter, topping the consensus estimate of ($0.07) by $0.12. The company had revenue of $606.90 million for the quarter, compared to analysts' expectations of $580.29 million. During the same quarter in the prior year, the firm earned ($0.08) EPS. The firm's revenue was down 5.8% on a year-over-year basis. Peloton Interactive has set its FY 2025 guidance at EPS. On average, equities analysts forecast that Peloton Interactive will post -0.36 earnings per share for the current year.

Insider Buying and Selling

In other news, CFO Elizabeth F. Coddington sold 238,664 shares of the business's stock in a transaction dated Tuesday, September 16th. The stock was sold at an average price of $7.85, for a total transaction of $1,873,512.40. Following the completion of the transaction, the chief financial officer directly owned 346,535 shares of the company's stock, valued at approximately $2,720,299.75. The trade was a 40.78% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, insider Nick V. Caldwell sold 206,901 shares of the business's stock in a transaction dated Tuesday, September 16th. The stock was sold at an average price of $7.78, for a total value of $1,609,689.78. Following the transaction, the insider directly owned 737,788 shares of the company's stock, valued at approximately $5,739,990.64. This represents a 21.90% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last ninety days, insiders sold 1,851,961 shares of company stock valued at $14,775,168. Corporate insiders own 1.34% of the company's stock.

Hedge Funds Weigh In On Peloton Interactive

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the business. Vident Advisory LLC raised its stake in Peloton Interactive by 1.1% during the 2nd quarter. Vident Advisory LLC now owns 110,258 shares of the company's stock valued at $765,000 after acquiring an additional 1,180 shares in the last quarter. Federated Hermes Inc. raised its stake in Peloton Interactive by 0.3% during the 1st quarter. Federated Hermes Inc. now owns 533,820 shares of the company's stock valued at $3,374,000 after acquiring an additional 1,643 shares in the last quarter. Victory Capital Management Inc. raised its stake in Peloton Interactive by 4.4% during the 1st quarter. Victory Capital Management Inc. now owns 43,944 shares of the company's stock valued at $278,000 after acquiring an additional 1,860 shares in the last quarter. Nisa Investment Advisors LLC raised its stake in shares of Peloton Interactive by 40.2% in the 1st quarter. Nisa Investment Advisors LLC now owns 6,503 shares of the company's stock worth $41,000 after buying an additional 1,864 shares in the last quarter. Finally, Wealthfront Advisers LLC raised its stake in shares of Peloton Interactive by 11.3% in the 1st quarter. Wealthfront Advisers LLC now owns 18,463 shares of the company's stock worth $117,000 after buying an additional 1,877 shares in the last quarter. 77.01% of the stock is owned by institutional investors and hedge funds.

Peloton Interactive Company Profile

Peloton Interactive, Inc operates interactive fitness platform in North America and internationally. The company offers connected fitness products with touchscreen that streams live and on-demand classes under the Peloton Bike, Peloton Bike+, Peloton Tread, Peloton Tread+, Peloton Guide, and Peloton Row names.

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